UN: World economy has not emerged from slow growth period

A new report says the world economy has not yet emerged from a period of slow growth and the trend threatens to disrupt an ambitious UN plan to end extreme poverty by 2030.

The report by the UN added the world economy expanded by just 2.2 percent in 2016 which is the slowest rate of growth since the 2009 recession. It also noted that the world economy is projected to grow by 2.7 percent in 2017 and 2.9 percent in 2018.

According to the World Economic Situation and Prospects report, the world body’s 48 designated least developed countries, most of which are in Africa, are expected to grow by 5.2 percent in 2017 and 5.5 percent in 2018. The figures are well below the target of 7 percent needed to make a dent in poverty.

Nearly 35 percent of the population in the least developed countries may remain in extreme poverty unless there is a surge in growth rates, warned the report.

Meanwhile, the UN announced that to reduce poverty in the least developed countries; investment has to expand by at least 11 percent annually through 2030.

“Developing countries continue to be the main drivers of growth, accounting for about 60 percent of the world’s gross product increases in 2016-2018,” the report said.

East and South Asia remain the world’s most dynamic regions, propelled by robust domestic demand and supportive macroeconomic policies.

According to the UN, uncertainties over the policies of US President-elect Donald Trump and Brexit have “the potential to undermine any projected recovery in business investment, impede international trade growth and even derail the already weak global growth.”